A corporation sold a warehouse during the current year.The straight-line depreciation method was used.Information about the building is presented below:

How much gain should the corporation report as Sec.1231 gain?

Question

A corporation sold a warehouse during the current year.The straight-line depreciation method was used.Information about the building is presented below:

How much gain should the corporation report as Sec.1231 gain?

Quizplus · Accepted Answer

C)
 11ea7e84_1f46_3990_9a0a_ff1a109caa79_TB1260_00 $710,000 total gain - $124,000 Sec. 291 recapture = $586,000 Sec. 1231 gain

A Corporation Sold a Warehouse During the Current Year